personal tax

Canada Revenue Agency (CRA) has started accepting personal tax returns starting February 26, 2018 so we just wanted to take this opportunity to list some important dates, tax tips along with  changes that have taken place in 2017.

Deadline:

The deadline to file your 2017 income tax return is April 30, 2018. If you or your spouse or common-law partner is self-employed then the deadline is extended to June 15, 2018. However, the amount owed is still due on or before April 30, 2018.

What do I need to file my 2017 tax return?

We have created a tax organizer document that you can use to organize all the paperwork. Please click here to download/print the document.The first page of the document asks for all the information that should provide to your accountant, the second page has a checklist that you can use to ensure that you gather all the required documents and the third page lists some important dates and updates.

Changes for 2017:

  • Children’s Fitness & Arts Credits are no longer available for the year 2017.
  • Cumulative contribution limit to Tax Free Savings Account (TFSA) was $ 52,000 as of Dec 31, 2017. In other words, if you had never contributed to a TFSA, you could have contributed up to $ 52,000 before the end 2017. If you still don’t have a TFSA, then you can open one and contribute a maximum of $57,500.
  • Maximum RRSP contribution room for the year 2017 is $ 26,010.
  • Beginning in 2017, parental leave can be extended to 18 months. However, a reduced Employment Insurance (EI) benefit rate of 33% of their average weekly earnings will apply instead of the current rate of 55% to those parents who choose to stay at home longer.
  • Disability Credit: You no longer need a doctor’s approval to apply to the government for the disability tax credit. In 2017, Canadians with impairments that make them eligible to receive the disability credit can get that same approval from a nurse.
  • Canada Caregiver Credit (CCC) in 2017: Infirm dependent credit, caregiver credit and family caregiver credit has been combined into a single credit called the Canada Caregiver Credit. You can claim Canada Caregiver Credit if you support the following people with a physical or mental impairment:
    • your spouse or common-law partner
    • your your spouse’s or common-law partner’s child or grandchild.
    • your or your spouse’s or common-law partner’s parent, grandparent, brother, sister, uncle, aunt, niece, or nephew (if resident in Canada at any time in the year).
      • The CCC combines three previous credits: the caregiver credit, the family caregiver credit, and the credit for infirm dependants age 18 or older. If you previously claimed any or all of these credits and your situation remains the same as in 2016, then your 2017 CCC claim will stay about the same as in 2016. In some cases, your claim may increase.However, the one exception is that the previous caregiver credit for people who support a parent or grandparent, who is 65 years of age or older, living with them, and who does not have a physical or mental impairment, is no longer available.
  • The family tax cut, also known as the income splitting tax credit, has been eliminated for 2016 and subsequent tax years. This doesn’t apply to you if you receive a pension; you may still be able to reduce your taxes on eligible pension income by splitting with your spouse or common-law partner.
  • Medical expenses for conceiving a child now qualify as a medical expense. Taxpayers can go back as far as 2007 to claim these expenses under the Taxpayer Relief Provision.
  • Public transit credit is eliminated effective June 30, 2017. Public transit credit is still available for seniors though.
  • Education & Textbook Credit: Effective January 1, 2017, the federal education and textbook tax credits were eliminated. This measure did not eliminate the tuition tax credit, and it does not affect the ability to carry forward unused education and textbook credit amounts from years prior to 2017.
  • First-Time Donor’s Super Credit: The First-Time Donor’s Super Credit will be allowed to expire at the end of 2017. In other words, it can be claimed once from the 2013 to 2017 taxation years.

Should you have questions regarding any of the credits mentioned above or to discuss your personal tax situation, please call or send us a message on WhatsApp at +1-905-507-0032 or contact us through our website or Facebook Page.

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